What exhibit contains the Covenant of Non-Competition that a Boulder Designs franchisee must comply with after termination or expiration?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
In furtherance of this Section, Franchisor has the right to require officers, managers, and partners along with certain individuals and any Covered Person to execute a standard form non-disclosure or noncompetition agreements in a form the same as the Non-Disclosure and Non-Competition Agreement attached as Exhibit 2.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the Non-Disclosure and Non-Competition Agreement is included as Exhibit 2. This agreement outlines the restrictions placed on the franchisee and certain related individuals (officers, managers, partners, etc.) regarding competition with Boulder Designs both during the franchise term and for a period after the franchise agreement expires or is terminated.
The exhibit's presence indicates that Boulder Designs takes measures to protect its confidential information, trade secrets, and customer relationships. These measures are typical in franchising to maintain brand consistency and prevent franchisees from using the franchisor's knowledge to unfairly compete after leaving the system.
Prospective Boulder Designs franchisees should carefully review Exhibit 2 to understand the specific terms of the non-competition agreement, including the duration of the restrictions, the geographic scope, and the types of activities that are prohibited. Understanding these limitations is crucial for planning future business ventures after the franchise relationship concludes.